Corporate governance rarely captures headlines until it collapses. From the Enron scandal in the U.S. to the downfall of Satyam Computers in India, history is littered with examples where lack of oversight, opaque practices, and misplaced incentives triggered financial earthquakes. More recently, the controversies surrounding Adani Group’s corporate disclosures in the wake of a short-seller report, or Evergrande’s debt crisis in China, highlight how governance failures in one corner of the globe can rattle markets worldwide.

These episodes are not just tales of corporate mismanagement; they are stark reminders that governance lapses now have global consequences, unsettling investors, regulators, and ordinary citizens alike.

Global Standards vs Local Realities

Globalization has pushed for harmonization of governance norms. Initiatives like the OECD Principles of Corporate Governance and frameworks such as ESG (Environmental, Social, and Governance) metrics are increasingly shaping investment flows. In fact, large global funds today prefer companies that disclose sustainability practices and demonstrate ethical leadership.

But this global push often collides with local realities. In emerging economies, where family owned businesses dominate, the challenge lies in balancing tradition with modern governance expectations. The independence of boards, minority shareholder rights, and transparency in decision-making are still evolving practices. India’s SEBI-mandated corporate governance norms represent progress, yet compliance often remains more procedural than substantive.

The ESG Imperative

One of the most striking transformations of the past decade has been the rise of ESG. Investors, consumers, and even employees are demanding that corporations move beyond profit to embrace sustainability and social responsibility. Climate change litigation, ethical sourcing of minerals, and gender diversity on boards are no longer fringe concerns—they are mainstream expectations.

However, the ESG movement faces its own credibility crisis. Accusations of “greenwashing”—where companies exaggerate their sustainability credentials—threaten to erode public trust. The recent EU crackdown on misleading climate claims underscores how global regulators are beginning to demand proof, not promises.

Technology and Transparency

If globalization has complicated governance, technology offers tools for course correction. Blockchain-based auditing, real-time disclosure systems, and AI-driven compliance monitoring are slowly being adopted to make corporate practices more transparent. At the same time, digitalization brings new risks—cybersecurity breaches, misuse of consumer data, and ethical dilemmas around artificial intelligence—all of which fall squarely within the remit of modern corporate governance.

India at the Crossroads

For India, the challenge is particularly acute. On one hand, Indian companies are globalizing faster than ever, raising capital abroad, and competing in international markets. On the other, domestic investors have been jolted by corporate scandals and governance lapses. The regulatory landscape, though more robust today, still suffers from uneven enforcement.

As India positions itself as a global investment hub, the credibility of its corporate governance practices will determine not just investor confidence but also the country’s reputation on the world stage.

The Road Ahead

Globalization is not merely an economic process; it is an ethical challenge. Corporations now wield influence once reserved for nation-states, shaping policies, supply chains, and even social narratives. With that power comes a responsibility that cannot be outsourced or compromised.

The task before regulators, boards, and shareholders is to ensure that governance frameworks do not become hollow rituals but living mechanisms of accountability. The future belongs to corporations that recognize that trust is not an accessory to profit, but its foundation.

In a borderless world, the health of corporate governance is no longer a domestic concern. It is a global public good—and it is time we treated it as such.